The number of negative equity cases in the fourth quarter of 2023 was at its highest since 2004.

According to the Monetary Authority, there were 25,163 cases at the end of December, more than double the number in the third quarter, with a total mortgage amount of HK$131 billion.

The authority said the loans had mainly been taken out by bank workers, who generally enjoy a higher loan-to-value ratio.

The delinquency ratio, involving payments that had been missed, rose marginally to 0.03 percent from 0.02 percent at the end of September.

"The most important thing in terms of risk management for the banks is that the delinquency ratio doesn't go up, or has an impact on their risk management... So far we don't see that [happening]," the authority's deputy chief executive Arthur Yuen said.

Government data out earlier this week showed home prices in Hong Kong have fallen to their lowest level in almost seven years.